Medically reviewed by Jawad Arshad, MD, FACEP. Last reviewed: October 15, 2026.
Small business health insurance in Florida is a group plan you buy for your employees, and Florida defines "small" as 1 to 50 full-time equivalent employees. The renewal you get this fall is probably higher than last year's, so the useful question is what you can do about the cost.
Summit Health Benefits works with Florida employers on both sides of that question: which group plan to buy, and how a Section 125 plan lowers the payroll tax bill on the premiums employees already pay.
Key facts (2026):
- Florida small group plans are for employers with 1 to 50 full-time equivalent employees, and 10 carriers are listed for policies effective on or after January 1, 2026 (Florida Chief Financial Officer, 2025).
- Preliminary 2027 small group filings average an 11.4% increase, ranging from 8.4% to 15.5%, and two carriers are exiting (ACASignups.net, updated September 24, 2026).
- Florida has 517,775 small employer firms, which is 99.0% of its employers (U.S. Small Business Administration Office of Advocacy, 2025 state profile).
- Florida does not have an individual income tax (Tax Foundation, 2026).
- Employer and employee each pay 7.65% FICA, made up of 6.2% Social Security and 1.45% Medicare (IRS Publication 15, 2026).
What Is Small Business Health Insurance in Florida?
Small business health insurance in Florida is a group health plan bought by an employer with 1 to 50 full-time equivalent employees. The employer picks the plan and pays part of the premium, and employees pay the rest.
The Florida Chief Financial Officer's office says self-employed people and family-only businesses are covered through the individual market instead. Small group plans may be sold through the SHOP marketplace, directly from the carrier, or both.
Two things shape what you pay. The first is the carrier's rate for your group, which Florida filings show is rising. The second is how the employee share is taxed. A Section 125 cafeteria plan, which is a written plan that lets employees pay premiums with pre-tax dollars, changes that second piece at no cost to your coverage. Summit Health Benefits' Section 125 health insurance guide explains the setup.
For national comparisons, see the best small business health insurance guide and the small business health insurance costs breakdown. Florida-specific plan rules also live on the Florida small business health benefits page.
Which Carriers Sell Small Group Health Insurance in Florida?
Ten carriers are listed to sell small group plans in Florida for policies effective on or after January 1, 2026. Three sell indemnity or PPO plans and seven sell HMO plans, according to the Florida Chief Financial Officer.
| Plan type | Carriers listed (Florida CFO, 2026 list) |
|---|---|
| Indemnity and PPO | Florida Blue (Blue Cross and Blue Shield of Florida), National Health Insurance Company, UnitedHealthcare Insurance Company |
| HMO | AvMed, BeHealthy Florida, Capital Health Plan, Florida Health Care Plan, Health Options (Florida Blue), Neighborhood Health Partnership, UnitedHealthcare of Florida |
Carrier availability differs by county and metal level, so the Florida Office of Insurance Regulation is the place to confirm who sells in your zip code. A broker can pull the same list and quote them side by side. The small business health insurance plans guide shows how plan types compare.
How Much Will Florida Small Group Rates Rise in 2027?
Florida small group carriers filed preliminary 2027 increases averaging 11.4%, with a range of 8.4% to 15.5%, according to ACASignups.net (updated September 24, 2026). These are unweighted averages of preliminary filings, not final approved rates.
Eight small group carriers remain after Florida Health Care Plan and National Health Insurance Company exit, per the same source. If your current carrier is one of the two exiting, you must pick a new plan for 2027 no matter what.
A rate increase lands on two budgets. Take a 20-person Florida company paying the KFF 2025 national average single premium of $9,325 a year. An 11.4% increase adds $1,063 per employee per year, which is $21,260 across the group before any change in how costs are split.
| Item | Per employee, per year | 20 employees, per year |
|---|---|---|
| 2025 average single premium (KFF) | $9,325 | $186,500 |
| 11.4% increase (Florida preliminary average) | $1,063 | $21,260 |
| 2027 premium at the average increase | $10,388 | $207,760 |
KFF's 2025 survey found workers paid $1,440 of the single premium and $6,850 of the family premium on average. Those employee shares are the part a Section 125 plan can move to pre-tax. Summit Health Benefits' 2027 premium increase by state report tracks how other states compare.
How Many Employees Does a Florida Business Need to Qualify for Small Group Coverage?
A Florida business qualifies for small group coverage with as few as one employee and up to 50 full-time equivalent employees, according to the Florida Chief Financial Officer. A business with only the owner and family members is treated as an individual-market buyer.
The 50-employee line matters for another reason. Employers with 50 or more full-time equivalent employees are subject to the ACA employer mandate, which Summit Health Benefits explains in its ACA employer mandate guide. Count carefully before you cross it.
Florida's smaller employers are the norm, not the exception. The SBA Office of Advocacy counts 517,775 small employer firms in Florida, and small businesses employ 3.8 million people, or 39.6% of Florida employees (2025 state profile, mostly 2022 Census data). KFF's 2025 survey found 59% of firms with 10 to 199 workers offer health benefits, versus 97% of firms with 200 or more.
How Can a Florida Small Business Cut Its Health Benefit Costs?
A Florida small business can cut health benefit costs by adding a Section 125 plan, which lets employees pay premiums before FICA tax. The employer saves 7.65% on every pre-tax dollar, and employees save 7.65% plus federal income tax.
Premiums paid by employees through a cafeteria plan are exempt from Social Security and Medicare tax (IRS Publication 15-B, 2026). The employer share of FICA is 7.65%, and the Social Security wage base is $184,500 in 2026 (IRS Publication 15, 2026).
Summit Health Benefits charges a $35 per enrolled employee per month administration fee, paid out of the FICA savings the plan creates. Summit's typical employer recapture is $91 to $136 per enrolled employee per month, so the net to the employer is about $56 to $101 per enrolled employee per month. Employee take-home pay rises about $70 to $110 per month (Summit Health Benefits plan figures, 2026).
Worked example: a 12-employee Tampa landscaping company
This example is hypothetical and uses Summit Health Benefits' typical range. All 12 employees enroll.
| Line | Low end | High end |
|---|---|---|
| Employer FICA recapture per employee per month | $91 | $136 |
| Total recapture, 12 employees, per month | $1,092 | $1,632 |
| Administration fee, 12 x $35, per month | $420 | $420 |
| Net to employer per month | $672 | $1,212 |
| Net to employer per year | $8,064 | $14,544 |
Check your own numbers first. FICA alone covers the $35 fee when an employee's monthly pre-tax deductions exceed about $458, because $35 divided by 7.65% is $457.52. Below that, the employee income tax benefit and lower turnover carry more of the value. Run your payroll through the Section 125 savings calculator for a company-specific estimate.
Does Florida Add a State Tax Layer to Section 125 Savings?
Florida adds no state tax layer, because Florida does not have an individual income tax (Tax Foundation, 2026). Section 125 savings in Florida come from federal income tax and FICA only.
That keeps the math simple for owners and employees. There is no Florida income tax to reconcile on the W-2, and the savings do not depend on a state rule that could change. Employees see lower Box 1 wages and the same coverage.
If your workers ask how this looks on their paycheck, point them to the Summit Health Benefits Section 125 health benefits in Florida page, and to the Florida open enrollment guide for dates on the individual market.
What Should a Florida Owner Ask Before the Renewal Deadline?
A Florida owner should ask the broker or carrier five things before renewal: the exact 2027 rate, whether the carrier is staying in the small group market, plan changes, contribution rules, and the date the offer expires. Written answers keep surprises out of November.
Copy this email and send it to your broker or carrier.
Subject: 2027 renewal questions for our group
>
Hi, we are reviewing our group health renewal. Please confirm in writing: (1) the 2027 monthly rate for each coverage tier, (2) whether the carrier will keep selling small group plans in Florida in 2027, (3) any change to deductibles, copays or networks, (4) the minimum employer contribution and participation requirements, and (5) the date this offer expires. Please also send two alternative quotes from other carriers. Thank you.
For other ways to cap costs, compare level-funded health plans and the small business health insurance alternatives Summit Health Benefits tracks. Ask a licensed agent about the tax credit that some small employers qualify for, explained in the small business health care tax credit guide.
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A licensed professional will compare your current Florida renewal with a Section 125 setup and show your payroll tax savings before your plan year starts.
Frequently Asked Questions
What is small business health insurance in Florida?
Who sells small business group health insurance in Florida?
How much will Florida small business health insurance rise in 2027?
Can a Florida small business use the Small Business Health Options Program?
How many employees can a Florida small group plan have?
Does a Section 125 plan work for Florida small businesses?
Sources
Florida Chief Financial Officer, Small Group Market Carrier List 2026 (myfloridacfo.com, updated October 2025); ACASignups.net, 2027 Rate Changes for Florida (updated September 24, 2026); U.S. Small Business Administration Office of Advocacy, Florida 2025 State Profile; Tax Foundation, Taxes in Florida (2026); IRS Publication 15, Employer's Tax Guide (2026); IRS Publication 15-B, Employer's Tax Guide to Fringe Benefits (2026); KFF, 2025 Employer Health Benefits Survey; Summit Health Benefits plan figures for administration fee, recapture range and take-home lift (2026).